In the ever expanding information age, consumers have become increasingly concerned with their privacy at the same time that merchants and advertisers have become concerned with learning as much as they can about their consumers. Traditionally, consumers appreciate when merchants learn more about them. For example, consumers often participate in merchant loyalty programs that allow the merchant to track the consumer's spending, with the consumer receiving offers and/or discounts targeted directly to them. Participating in such a program, or in any program designed to provide the consumer with advertising made to suit their interests, has traditionally required the participant to provide personal information.
In times of the increasing worries of identity theft and the increasing desire to maintain personal privacy and security, consumers are more apprehensive in situations where they are asked to provide personal information. Many consumers will refrain from participating, or may provide false information in order to protect their privacy and personal or other sensitive information. As a result of this shift, there have been a variety of laws and regulations passed by various jurisdictions, associations, and groups in an effort to increase consumer privacy, though at an expense to the advertisers and merchants that previously benefited from such information.
Thus, there is a perceived opportunity to improve the ability for merchants and advertisers to advertise to and better serve ideal groups of consumers while protecting the privacy of those same consumers.